Saturday, February 21, 2015
Biotech Investing: Spectrum Pharmaceuticals (SPPI) loses patent suit
Spectrum (SPPI) fell by as much as 35% in after-hours trading on Friday after documents (link below) were released that it lost a lawsuit against generic company Sandoz regarding it's lead product Fusilev. The company sued Sandoz back in 2012 after the generic maker filed an ANDA to sell a generic equivalent of the drug.
The stock dropped and I doubled down on my position at $4.90. There's already a similar generic drug that competes in that space so I don't expect an immediate or material sales drop in the near future. Spectrum just got approval for Beleodaq last quarter and recently filed an NDA for Captisol-enabledTM which is expected to be approved later in the year. These two additional drugs within their portfolio should more than offset any decrease in sales due to this generic competition.
Hope everyone is having a great weekend and wouldn't sweat this news at all.